Stocks to Watch: Facebook, Lululemon

NEW YORK -- Facebook shares gained 3.3% to $26.25 on Wednesday on expectations that the world's largest social-media platform is poised to announce a new Android phone.

Sources said Facebook is going to build its own operating system, based off Google's Android, keeping users on the social network. The phone, which is reported to be an HTC phone, will come with Facebook's native apps, including Camera and Facebook Messenger to keep its users from venturing outside Facebook's walled garden.

Facebook is set to make the announcement at 10 a.m. PST on Thursday. TheStreet is covering the event live.

Lululemon said Sheree Waterson, its chief product officer, is stepping down effective April 15.

Lululemon said the departure was part of a plan to reorganize its product team to support long-term growth. The yoga wear maker wouldn't comment specifically if the departure was related to a recent problem with see-through pants.